Business
Eureka Lithium (formerly Scout Minerals) Announces Completion of Acquisition and Closing of Concurrent C$5.18 Million Equity Financing
Vancouver, British Columbia – TheNewswire - June 1st, 2023 – Eureka Lithium Corp. (formerly Scout Minerals Corp.) (CSE:ERKA) (formerly SCTM) (“Eureka” or the “C
About this update from Eureka Metals Corp.
[{"type":"text","content":"Vancouver, British Columbia – TheNewswire - June 1st, 2023 – Eureka Lithium Corp. (formerly Scout Minerals Corp.) (CSE:ERKA) (formerly SCTM) (“Eureka” or the “Company”) is pleased to announce, further to its news releases of April 13, 2023, April 18, 2023, April 19, 2023 and May 8, 2023, that it has completed the acquisition of a large-scale land package prospective for spodumene-bearing lithium pegmatites in Northern Quebec’s under-explored Nunavik region which hosts two operating nickel mines (the “Acquisition”) and has closed the first tranche of its private placement, completing the sale of 9,553,425 subscription receipts for gross proceeds to the Company of $5,185,200 (the “Concurrent Financing”). Concurrent Financing In connection with the Acquisition, the Company completed the first tranche of its Concurrent Financing, issuing: (i) 337,692 Quebec super flow-through subscription receipts of the Company (the “Super FT Subscription Receipts”) at a price of $0.65 per Super FT Subscription Receipt, for gross proceeds of approximately $219,500; (ii) 3,578,333 flow-through subscription receipts of the Company (the “FT Subscription Receipts”) at a price of $0.60 per FT Subscription Receipt, for gross proceeds of $2,147,000; and (iii) 5,637,400 non-flow-through subscription receipts of the Company (the “Non-FT Subscription Receipts”, and together with the Super FT Subscription Receipts and the FT Subscription Receipts, the “Subscription Receipts”) at a price of $0.50 per Non-FT Subscription Receipt, for gross proceeds of $2,818,700. In aggregate, the Company raised gross proceeds of $5,185,200.. The Company paid finder’s fees totaling $130,977.99 and issued 352,466 broker warrants (each, a “Broker Warrant”) to certain finders in connection with the sale of the Subscription Receipts. Each Broker Warrant entitles the holder to acquire one common share (a “Common Share”) at a price of $0.75 for a period of 24 months. The Broker Warrants are subject to a statutory hold period of four months and a day. The net proceeds of the Concurrent Financing will be used for qualified expenditures in respect of the mineral claims acquired pursuant to the Acquisition, and, in the case of the Non-FT Subscription Receipts, also for general working capital. As a result of the completion of the Acquisition: (i) each Super FT Subscripti...